OFFICIAL DOCUMENTS The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS H. E. Issa Doubragne Minister of Economy, Planning and International Cooperation Ministry of Economy, Planning and International Cooperation B.P. 286 N'Djamena Republic of Chad Re: Republic of Chad: Advance Agreement for the Preparation of the Proposed CHAD Improving Learning Outcomes Project Project Preparation Advance No. IDA V4050 Additional Instructions: Disbursement Excellency: I refer to the Advance Agreement ("Agreement") between the Republic of Chad ("Recipient") and the International Development Association ("World Bank") for the preparation of the above-referenced Project of the same date, herewith. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Project Preparation Advance No IDA-V4050 ("PPA"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The World Bank Disbursement Guidelines for Projects, dated February 1, 2017, ("Disbursement Guidelines") are available in the World Bank's public website at htt : Www.wor1dbank.or, and are an integral part of the Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply to the PPA is specified below. Sections and subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the PPA: * Reimbursement * Advance * Direct Payment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is the Refinancing Date specified in the Agreement. Any changes to this date will be notified by the World Bank. II. Withdrawal of PPA Proceeds (i) Authorized Signatures (subsection 3.1). A letter in the Form attached (Attachment 1) should be furnished to the World Bank at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications: The World Bank Resident Mission N'Djamena, Republic of Chad Attention: Mrs. Clara De Sousa, Country Director for Chad (ii) Applications (subsections 3.2 - 3.3). All Withdrawal and Documentation Applications will be electronically delivered to the Bank, via the World Bank's website Client Connection. (iii) Electronic Delivery (subsection 3.4) The Recipient shall deliver Withdrawal Applications (with supporting documents) electronically through the World Bank's web-based portal "Client Connection" at htts: clie ntco nectinwrld -bakor This option will be effected after the officials designated in writing by the Recipient who are authorized to sign and deliver Withdrawal Applications have registered as users of "Client Connection". The designated officials shall deliver Applications electronically by completing the Form 2380, which is accessible through "Client Connection". By signing the Authorized Signatory Letter, the Recipient confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. The Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Recipient encounters legal limitations), and which were previously agreed with the World Bank. By designating officials to use SIDC and deliver the Applications electronically, the Recipient confirms through the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, available in the World Bank's public website at htts: o d' ank._org and "Client Connection"; and (b) to cause such official to abide by those terms and conditions. (iv) Minimum Value of Applications (subsection 3.5). The Minimum Value of Direct Payment and Reimbursement Applications is twenty percent of the DA ceiling. (v) Advances (sections 5 and 6). * Type ofDesignated Account (subsection 5.3): Segregated * Currency ofDesignated Account (subsection 5.4): XAF * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): SOCIETE GENERALE TCHAD * Ceiling (subsection 6.1): XOF 200, 000, 000. Important Notice: No Initial Deposits can be made to Desi2nated Accounts if there is a Lapsed Loan in the Borrower/Recipients Loan Portfolio with the World Bank. III. Reporting on Use of PPA Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement and for reporting eligible expenditures paid from the Designated Account: o Statement of Expenditures in the form attached (Attachment 1) * For requests for Direct Payment: records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Monthly (iii) Other Supporting Documentation Instructions All the supporting documentation should be maintained by the Recipient for review by the World Bank or independent auditors. For reporting eligible expenditures paid from the Designated Account, each application should be accompanied by a Bank Reconciliation Statement in the form attached (Attachment 2) and its related bank statements. V. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the World Bank's website (http://www.worldbank.orgf) and "Client Connection". The Bank recommends that you register as a user of "Client Connection". From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Loan, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, or if you have any queries in relation to the above, please contact the World Bank by email at askloans@worldbank.org. Yours sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION By Rasit Pertev Country Manager for Chad Africa West Region Attachments 1. Form for Authorized Signatures. 2. Form of Statement of Expenditures format (SOE) 3. Form of Designated Account Reconciliation Attachment 1 Form of Authorized Signatory Letter [Letterhead] Ministry of Economy, Planning and International Cooperation [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Dear [Country Director]: Re: Republic of Chad: Advance Agreement for the Preparation of the Proposed CHAD Improving Learning Outcomes Project Project Preparation Advance No. IDA-V4050 I refer to the Advance Agreement ("Agreement") between the Republic of Chad ("Recipient") and the International Bank for Reconstruction and Development ("World Bank"), dated , providing for the above Project Preparation Advance. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Agreement, any [lone] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal [and applications for a special commitment] under this Grant. For the purpose of delivering Applications to the World Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the World Bank. 5[This confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. In full recognition that the World Bank shall rely upon such representations and warranties, including without limitation, the representations and warranties I Instruction to the Recipient when sending this letter to the World Bank: Stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. Please delete this footnote in final letter that is sent to the World Bank. 2 Instruction to the Recipient: Stipulate if more than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the World Bank. 3 Instruction to the Recipient: Use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the World Bank. 4 Instruction to the Recipient: Use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the World Bank. 5 Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the World Bank. contained in the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of SIDC"), the Recipient represents and warrants to the World Bank that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the World Bank records with respect to this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] Attachment 2 - Statement of Expenditures format IDA - International Development Association Statement of Expenditures Financier Payment made during the period from to Loan/Credit/Grant # Application # The following expenditures have been incurred during the retroactive financing period (please tick) Yes No Category # The following expenditures have been incurred before the closing date of the loan/credit/grant (please tick) Yes No Page ONLY for the Designated Account 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Item Supplier's Brief Prior Contract # Contract Invoice Date of Total % Eligible Exchange Date of Amount No Name Description Review Currency Number Payment Amount of Financed Amount Rate Withdrawal from Withdrawn of the (Contract?) (Client and Amount Invoice from the the Designated from the Expenditure Connection Covered by Bank (Col 9 x Account Designated (YES or #for Prior (Original + Application 10) Account NO) Review Amendment) Contracts) (Net of (Col 11/12) Retention) 0.00 0.00 TOTAL 0.00 Supporting documents for this SOE are retained at (insert location) A separate form should be used for each category. Attachment 3 - Designated Account Reconciliation Statement DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOAN/CREDIT/PPF/COFINANCIER NUMBER ACCOUNT NUMBER WITH (BANK) 1. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE SPECIAL ACCOUNT (NUMBER 1 LESS NUMBER 2) = 4. BALANCE OF SPECIAL ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. + * 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: + * 7. PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS APPLICATION NO. AMOUNT * SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED + 8. MINUS: INTEREST EARNED -_* 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) = 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. DATE: SIGNATURE: TITLE: